Last week, the internet had been swamped with the unanticipated rise in the price of cryptocurrencies, including the meme-inspired Dogecoin. The year seemed to be going great for the currency as it started trading on a price below a penny and soon went on to reach an all-time high of 14 cents by April, with over 11.7 billion units in circulation.
However, the short-lived hype seems to be over as Bitcoin has faced a crash over the weekend; it had plunged approximately 14% within an hour on Saturday. Other renowned cryptocurrencies such as Ethereum and Dogecoin have also witnessed a sharp decline before recovering.
Bitcoin had reached a new high this year as it was now becoming a more widely used currency. Over years, the cryptocurrency has gained a large fan following; ranging from adults to stock market experts who like the idea of taking risks in a market so volatile. However, the steep decline in the value of Bitcoin insinuates a much bigger problem at hand. Although unverified, rumor has it that the US Treasury is planning to put an end to all modes of illegal money-making, including cryptocurrencies. The treasury was contacted to confirm this plan of action, but there was no response.
The swift decline in the value of Bitcoin confirms the doubt flowing in the minds of the vast majority of people: The cryptocurrency market becomes increasingly volatile by the day. The plunge of Bitcoin is ironic as it was on the road to success last week where crypto excitement was flowing at a completely different level.
This newfound enthusiasm was fueled by the inauguration of the trading platform, Coinbase, which became public at a valuation of nearly $ 86 billion. Moreover, the rapid rise in the meme-inspired Dogecoin also made a significant contribution to the hype of Bitcoin. Crypto enthusiasts have spent years preaching the power vested in Bitcoin to give the domain of finance a whole new meaning and with Coinbase’s inauguration, their hard work had finally reached fruition.
Despite the decline in the value of Bitcoin, the world of cryptocurrency is starting to get noticed. Tesla now accepts payment in the form of bitcoin and renowned payment companies including PayPal, Mastercard (MA) are attempting to restructure payments by incorporating the use of Bitcoin.